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IRS To Increase EP Scrutiny

Carol Gold, director of Employee Plans, Tax-Exempt and Government Entities Division , recently informed the employee benefits community of the IRS s plan to increase its efforts in the area. Although Gold indicated that the employee benefits area isnt in terrible disarray, she does believe that the "EP community hasnt been immune to the lure of hucksters or promoters." Her concern stems partly from the fact that enforcement has slipped in the last few years and that the IRS has noticed some trouble spots recently.

Gold indicated that increased examinations will be occurring, as has been the trend starting last year. Changes at the IRS to cover the new initiatives include hiring 55 new agents, modernizing its infrastructure, improving review and filing in the Form 5500 area, and working with the Office of Professional Responsibility to help locate practitioners not up to professional standards. Organizations performing in the employee benefits area would be well advised to review current processes and procedures to evaluate adherence to compliance standards.